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The president of the Engineering and Research and Development Services (ERS) division at HCL Technologies Ltd. (HCL) congratulated the Boeing Company (Boeing) on the maiden flight of its 787 Dreamliner jet airliner on December 15, 2009. Out of the many companies working on the 787 Dreamliner project, HCL was the only Indian information technology services firm to be selected for the project. As part of the project, HCL worked closely with Boeing, and some of Boeing's tier-one suppliers, in developing various onboard mission-critical software systems, such as the electrical power generation and distribution system and the pilot controls. The multi-million dollar deal had important implications for HCL and its future in the US$644.3 billion aerospace and defence industry. HCL ERS had to make a crucial strategic choice: should the division continue to offer great value to its customers by helping them optimize costs and improve delivery time, or should it move up the value chain by investing more in research and development capabilities, thereby emerging as a leader rather than a follower in this highly complex and technology-driven industry? Rahul Kumar Sett is affiliated with Indian Institute of Management Nagpur.

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